BSP: Jan. inflation likely no higher than 4.5%

Lower utility costs are expected to temper the inflation rate, which the Bangko Sentral ng Pilipinas (BSP) said Friday will likely be within the 3.6 percent to 4.5 percent range this January.

 

“Inflation in January remained manageable as increases in the prices of select fruits and vegetables were likely offset by reductions in utility charges,” BSP Governor Amando Tetangco Jr. said.

 

The BSP chief had earlier said that inflation this year could average below 4 percent.

 

“Inflation has started to trend down, and the expectation for this year is that it will be below the midpoint of the target range,” he said.

 

The BSP’s full year is three to five percent, which is also the forecast of the Hong Kong and Shanghai Banking Corporation.

 

"Even though inflation will likely pick up in second half of 2012 due to shifting base effects and a stabilization of global growth, it should nonetheless stay within the government’s target range of three to five percent throughout this year," HSBC said.

 

According to Roberto Juanchito Dispo, president of First Metro Investment Corp.inflation could be within 3.5 percent to 3.7 percent because of stable crude oil prices.